S&P Global Ratings Highlights Challenges for JD.com in Maintaining Growth

S&P Global Ratings noted in a report on May 18 that JD.com (09618.HK) may face challenges in maintaining its growth momentum in the coming quarters. According to Jin10, the company's core retail business experienced growth in the first quarter due to an expanded user base and increased shopping frequency, surpassing S&P's expectations. However, S&P analysts believe that JD.com's plan to reduce promotional activities could lead to a slowdown in retail growth and a deceleration in user growth. They added that competition in the food delivery industry might intensify during the upcoming peak season. S&P suggested that JD.com may need to conduct more targeted promotional activities in the food delivery sector to manage the resulting losses.